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Economic Outlook S&P raises Ghana's credit ratings to B with stable outlook

The New York-based ratings agency cited the country's improving banking sector stability and lower inflation.

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play S&P raises Ghana's credit ratings to B with stable outlook

Standard & Poor's financial services firm has revised Ghana's ratings up to B from B- with a stable outlook.

The New York-based ratings agency cited the country's improving banking sector stability and lower inflation.

READ MORE: Collapsed banks minimised job losses -Akufo-Addo

“Ghana’s improving banking sector stability and lower inflation supports our view that the effectiveness and transmission mechanism of its monetary policy have improved," S&P said in its recent report released on September 14, 2018.

"We are therefore raising our long-term ratings on Ghana to ‘B’ from ‘B-‘. We are affirming the short-term foreign and local currency sovereign credit ratings at ‘B’. The outlook is stable.”

Ignore critics, economy is strong

Last week, the founding member of political think tank Danquah Institute, Gabby Asare Otchere-Darko called on Ghanaians to ignore the critics of the Ghanaian economy.

He said things are getting better under the Akufo-Addo government as compared to the erstwhile administration.

Otchere-Darko, who is a staunch member of the ruling New Patriotic Party (NPP) said the economy is on track and performing better now than in 2016.

In a Twitter post, he said: "If you follow the news you are likely to believe that the economy is performing worse now than it did in 2017 or 2016,” he stated, adding “but in essence, the opposite is rather the case. It is getting stronger and not on steroids”.

Better managers of the cedi

The cedi has in recent days plunged against the dollar and other major trading currencies.

But according to Vice-President Dr Mahamudu Bawumia, the Akufo-Addo government has performed better than the erstwhile Mahama administration in managing the Cedi depreciation against the dollar.

Using data from the Bank of Ghana as his reference, Dr Bawumia said “The Cedi exchange rate increased from 1.1 to 4.2 to the Dollar between 2008 and 2016. At the time we assumed office, the cedi exchange rate was some 4.2 cedis to the Dollar. Today, if you look at the Bank of Ghana data, it is at 4.75 to the dollar. It is, therefore, absolutely clear and incontrovertible that we, as a government, under Nana Addo Dankwa Akufo-Addo’s leadership, and the management at the Ministry of Finance; and the Bank of Ghana, it is clear that we have managed the exchange rate much better than our predecessors.”

READ MORE: Ghana rated among the best aviation spots in Africa

The cedi is almost selling at GHC 5 for $1.

Critics have blamed the government policies for the weakening of the cedi against the U.S. dollar.

However, Dr. Bawumia explained that: “So far, this year, the Ghana cedi has depreciated by just seven per cent against the U.S. dollar”.

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